The leaders of the world's two emerging economic powerhouses are meeting on the sidelines of the BRICS Summit in the southern city of Sanya.

Chinese President Hu Jintao and Indian Prime Minister Manmohan Singh are likely to discuss building economic ties.

India is concerned about the bilateral trade imbalance, and is trying to secure greater market access to bridge that gap.

India's consumption of Chinese imports has surged over the past decade.

China's exports to India hit $40.9 billion in 2010. That's 26 times the level in 2000.

(SOT) Thiyaga Rajan, Managing Director, Aquarius Investment Advisors:Given the potential of these two economies, I think the Chinese Premier made a statement during his last visit to India that the bilateral trade will reach about $100 billion by the year 2015. If that has to happen, a lot of issues are to be ironed out. India is looking for very big investments in the infrastructure sector, and I'm sure Prime Minister Manmohan Singh will be pushing the Chinese industry to look at Indian infrastructure very very closely.

Issues aside though, Thiyaga Rajan of Aquarius Investment Advisors says the two nations must work together to promote growth.

(SOT) Thiyaga Rajan, Managing Director, Aquarius Investment Advisors:People always used to compare India and China, saying India versus China, but I always used to tell my friends that it is India and China which is - everybody should be looking at it that way - which will be far better for the region, as well as the economic growth of the country.

The International Monetary Fund says Washington lacks a "credible strategy" to stabilize its mounting public debt, posing a small, but significant risk of a new global economic crisis.

CNBC's Bertha Coombs has more.

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Bertha Coombs, CNBC, New Jersey.

The IMF is out with its 2011 global fiscal report and the International Monetary Fund says debt ratios continue to rise in advanced economies, financing needs are at historical highs, with the average government gross debt ratio projected to breach the 100 percent threshold for the first time since the aftermath of World War II.

The report could give ammunition in the upcoming debt ceiling debate here in the U.S.. The IMF says the United States needs to accelerate adoption of what it calls credible measures to reduce its debt ratios.

The December tax package passed here boosted the U.S. debt burden two-tenths of a point to nearly 10.8 percent of GDP for 2011. That's higher than Japan.

About Japan, the IMF says the country will inevitably see significant additional fiscal costs because of the March 11th earthquake, but at this point, that can't be estimated.

Germany is expected to outperform its EU peers. It cut its debt by nearly a full one point, while Spain's austerity measures cut its debt just over half a point for 2011.

Emerging economies deficits fell an average of half a point due to their faster growth. India with a high 8.3 percent level is actually down nearly a point from 2010, as are China, Brazil and Russia. But Middle East and North African nations, spending more to appease rising discontent as we're seeing in Saudi Arabia, they've actually increased their debt levels from about 2 percent to nearly 5 percent this year.

The IMF says rather than spending, these emerging nations should be using their cash to shore up their fiscal houses, rather than more stimulus. Back to you in the studio.

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A stern warning there from the IMF.

Well that wraps up today's "Asia market Daily". I'm Saijal Patel from CNBC, thanks for watching.